Financial Services (Investment Business (Special Purpose Investment Business – Exemption)) (Jersey) Order 2001

Summary

This Order provides a targeted exemption from the Jersey Financial Services (Jersey) Law 1998 registration regime for persons who act as a functionary to a special purpose regulated scheme and who carry on special purpose investment business in relation to that scheme. It defines the key terms that determine who qualifies for the exemption and limits the scope of the exemption by keeping certain Law provisions in force for exempted persons.

• Who is exempt: Any person acting as a functionary (manager, investment manager, advisor, administrator, paying agent, distributor, subscription/placement/sales agent, dealer, trustee, custodian, custody agent, depository or general partner) of a special purpose regulated scheme, in relation to special purpose investment business carried on for that scheme
• What counts as special purpose investment business: Dealing in investments, arranging deals, discretionary investment management, and giving investment advice, all carried on in relation to a special purpose regulated scheme or its investors
• What is a special purpose regulated scheme: An investment scheme established for a special purpose (principally securitisation or repackaging of assets involving issue of securities or an approved capital market transaction) whose securities are issued or allotted exclusively to qualified professional investors
• Who counts as a qualified professional investor: Either a professional investor (as defined) or a person who has received and acknowledged a prescribed investment warning about the risks and unregulated status of the scheme
• Scope of continuing regulation: Despite the exemption, Articles 12, 23 to 26, 28, 32 to 39 and 41 of the Financial Services (Jersey) Law 1998 continue to apply to the exempted person as if they were a registered person

The exemption is narrow and definitional rather than procedural: it removes the need for full registration under the Law for qualifying functionaries of special purpose (securitisation type) schemes serving only qualified professional investors, while preserving certain conduct, supervisory and enforcement provisions of the Law over those persons.

Key obligations

• A functionary relying on the exemption remains subject to Articles 12, 23, 24, 25, 26, 28, 32, 33, 34, 35, 36, 37, 38, 39 and 41 of the Financial Services (Jersey) Law 1998 as if registered
• For an investor who is not already a professional investor to qualify as a qualified professional investor, the offer document must include the prescribed investment warning and the investor must acknowledge it before securities are issued or allotted to them
• Securities in a special purpose regulated scheme must be issued or allotted exclusively to qualified professional investors for the scheme to retain its exempt status (subject to the pre 1 July 1999 grandfathering for existing scheme investors)

Applies to

functionaries of special purpose regulated schemes (managers, investment managers, advisors, administrators, paying agents, distributors, subscription agents, placement agents, sales agents, dealers, trustees, custodians, custody agents, depositories, general partners), special purpose regulated schemes (securitisation or repackaging investment vehicles), qualified professional investors

Related documents

• This document is made under Financial Services (Jersey) Law 1998